The lawsuit was one of the catalysts behind Microsoft’s acquisition of the company.
Updated:
Dec 16, 2023 1:35 am
Posted:
Dec 16, 2023 1:25 am
More than two years after the California Civil Rights Department (CRD) filed a high-profile lawsuit against Activision Blizzard, accusing the company of widespread gender discrimination and pay inequality, the two parties have reached a settlement for approximately $54 million.
The Wall Street Journal first reported on the settlement on Friday, with the CRD publishing a statement on its website shortly after. Under the settlement, which is subject to court approval, Activision Blizzard “will take additional steps to help ensure fair pay and promotion practices at the company,” the CRD said.
It will also provide monetary relief to women who were employed by or contracting at Activision Blizzard between October 12, 2015 and December 31, 2020. If approved, the CRD says around $45 million of that sum will go directly to a settlement fund for compensating workers. Any excess funds from the settlement will be distributed to charitable organizations either focused on advancing women in video games and tech, or those that promote “awareness around gender equality issues in the workplace.”
The CRD filed the lawsuit under its previous title, the California Department of Fair Employment and Housing, in 2021 following a two-year investigation into Activision Blizzard. The lawsuit accused Activision Blizzard of several violations of California’s Equal Pay Act and Fair Employment and Housing Act, including fostering a “frat boy” culture under which women were frequently discriminated.
Activision Blizzard repeatedly denied the charges, and unsuccessfully sought to dismiss the lawsuit in October 2022. It gained so much attention, however, that it was seemingly one of the catalysts behind Microsoft’s recently finalized acquisition of Activision, as its stock had fallen so deeply.
Controversial CEO Bobby Kotick, meanwhile, confirmed that he will remain at the head of the Call of Duty maker only until the end of 2023 after the acquisition. A new CEO has not yet been announced.
The WSJ reports, citing sources with knowledge of the situation, that the regulator had initially sought an amount much higher than the settlement reached with Riot Games in December 2021. Per the WSJ report, the CRD in 2021 estimated Activision Blizzard’s liability at nearly $1 billion.
When reached by IGN, the CRD said the statement “largely speaks for itself with respect to the historic nature of this more than $50 million settlement agreement, which will bring direct relief and compensation to women who were harmed by the company’s discriminatory practices.”
Alex Stedman is a Senior News Editor with IGN, overseeing entertainment reporting. When she’s not writing or editing, you can find her reading fantasy novels or playing Dungeons & Dragons.
